Moody’s sees dip in global shipping earnings in 2022 but still robust

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Moody’s Investors Service on Monday stabilized its outlook on the global shipping industry from positive, but said business would still remain strong ahead of supply disruptions caused by the COVID-19 lockdown. “Container and dry bulk carrier earnings are at record highs as high demand for goods hit supply chains,” Moody’s analyst Daniel Harlid said in a research note. Earnings will fall from their peak in 2021, but will remain high, he added. Goods demand will remain strong in 2022, but the growth rate is likely to decline. However, oil tanker charter rates remain at “very low levels” despite an expected recovery in oil demand. “Our expectation is that earnings have moderated and the next 12 months will at least show a steady growth for the tanker carrier,” Harlid said. Capital expenditure in the broader shipping sector will continue to increase amid demand for new and more energy-efficient vessels in preparation for tougher environmental standards starting in 2023. Meanwhile, strong demand for iron ore, coal and grain will push up charter rates. Overall, average charter rates for dry bulk vessels have risen by about 143% over the past 12 months, Moody’s said.

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